Baku, Azerbaijan, May 8
More than a half of the profits on non-residents from direct investments were used for funding of Kazakh ventures subsidiary companies, Trend reports via National Bank of Kazakhstan.
“Profits of foreign direct investors decreased by 16.9 percent and amount to $4.8 billion,” reads the message.
“Current account of the balance based on the preliminary results of 1Q2019 reached $0.8 billion with surplus, compared to the deficit of $0.9 billion in 1Q2018. The positive change of the balance is due to surplus of trade balance, which amounts to $7.1 billion based on the preliminary results (an increase of 14.4 percent). Goods export increased by 9.9 percent and amounts to $15 billion. Import of goods increased by 6.1 percent and equals $7.8 billion,” the report said.
“The financial account (excluding the transactions with reserve assets of National Bank) amounts to $3.2 billion with positive balance (based on preliminary results). This is mainly due to increase of external assets of residents,” the statement said.
“The net capital flow due to direct foreign investments amounted to $2,4 billion. The capital flow was due to debt standstills by foreign affiliated firms before Kazakh ventures and due to reinvestment of non-residents' profits,” reads the message.
“The net capital outflow due to portfolio investments amounted to $4.8 billion and is related to the increase of foreign assets of residents and the decrease of residents’ liabilities after paying for the issued earlier eurobond,” the report said.
“Purchases of short term National Bank notes by non-residents have partially compensated for capital outflow due to portfolio investments,” said the report.
“As of April 1, 2019 the reserve assets (excluding the assets of Kazakhstan National Fund), were valued at $27 billion which covers the funding needs of 7.1 months of Kazakh import,” reads the message.